China approved the country's first mutual fund that bets on gold prices, as inflation fears fuel demand for the precious metal.Lion Fund Management Co said on Monday that it won approval from the China Securities Regulatory Commission to launch the Lion Global Gold Fund, which invests in gold-backed exchange traded funds (ETFs) overseas."The fund offers a brand new way to invest in gold, giving investors access to ''golden opportunities'' globally," the Beijing-based fund house said in a statement.The fund will be launched under China''s Qualified Domestic Institutional Investor (QDII) scheme, which invests Chinese money overseas, the company said.Chinese retail investors, who have no access to overseas gold markets, are rushing to buy gold coins, bullion and bars, as inflation fears, partly driven by loose monetary policies in the United States, are pushing up gold prices to historic highs.Taking advantage of rising interest in gold, fund managers are racing to roll out gold funds.E Fund Management Co, another fund house, is also waiting for regulatory approval to launch a gold fund under the QDII scheme.